Return On Ad Spend (ROAS): What It Is and How to Calculate It
Learn how to calculate ROAS, why it matters for ad performance, and how Agility helps optimize programmatic ad spend for maximum impact.
glossary
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What is Return on Ad Spend (ROAS)?
Return on Ad Spend (ROAS) is a key performance metric that measures the effectiveness of an advertising campaign by comparing the revenue generated to the amount spent on ads. It provides clear insight into how efficiently an ad budget translates into revenue, helping marketers determine whether their campaigns are driving real business impact.
Unlike Return on Investment (ROI), which accounts for broader business expenses, ROAS focuses solely on ad spend and the revenue directly attributed to it. This makes it a critical metric for performance-driven marketers looking to maximize the efficiency of their programmatic advertising efforts.
At Agility, we help businesses optimize their ad spend across native, display, video, audio, CTV, and other programmatic channels—giving marketers the flexibility to adjust strategies based on real-time ROAS insights.
How to Calculate Return on Ad Spend (ROAS)?
The formula for ROAS is:
ROAS = Revenue Attributable to Ads ÷ Cost of Ads (Ad Spend)
For example:
If an advertiser spends $5,000 on a programmatic campaign and generates $20,000 in revenue:
ROAS = 20,000 ÷ 5,000 = 4
This means a ROAS of 4:1, or $4 earned for every $1 spent.
Key Considerations When Calculating ROAS:
What counts as “ad spend” – Are you including only media costs, or factoring in creative production, platform fees, and in-house team expenses?
Revenue attribution – Ensure your measurement model accurately ties conversions and revenue to specific ad campaigns.
Granularity – ROAS can be calculated at the campaign, ad set, or even creative level, offering deeper insights into which tactics drive the best performance.
For high-performance programmatic campaigns, ROAS isn’t just about tracking numbers—it’s about using data to refine targeting, optimize bidding strategies, and allocate budgets efficiently. With Agility’s purpose-built programmatic solutions, you can fine-tune your ad strategy and ensure every dollar spent is working toward measurable, impactful results.
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